Vietcombank to reduce annual profit target

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Vietnam 's largest listed lender by market value Vietcombank said on November 19 that profits are down over the first three quarters due to slashed interest rates, causing it to adjust its yearly goal.

A Vietcombank representative said the two-percent cut of lending interest rates in February aimed at helping domestic enterprises has lowered bank profits, news website VnExpress reported.

As of late September, Vietcombank's pretax profits hovered around VND4.4 trillion (US$211 million), equal to 67 percent of its 2012 target, while its post-tax profits dropped 4 percent over the same period last year.

Asian Commercial Bank (ACB) and the Vietnam Export-Import Commercial Joint Stock Bank (Eximbank) both expressed concern in late October that they would be unable to reach their annual profit targets, as lending had slowed during the first nine months, expanding by only 2.5 percent since the end of last year.

Kien Long Commercial Joint Stock Bank (Kienlong Bank) announced in early November that that it had reached an agreement with its shareholders to scale back its 2012 profit target by 14.5 percent, down to VND530 billion ($25.4 million).

Ho Chi Minh City Housing Development Commercial Joint-Stock Bank (HD Bank) recently said it plans to hold a shareholder meeting to propose cutting its annual profit target, according to VnExpress.

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